Franchise briefing with John Stanton – Lava Coffee

We continue our series on Australian buying opportunities by speaking to John Stanton, who is the head of franchise development at Lava Coffee. Lava Coffee is a vibrant young Australian owned Specialty Coffee Franchise with a focus on high quality espresso coffee served in non-traditional locations.

Edenexchange
Thanks for speaking with us John. Firstly, what brought you to a leadership position at Lava Coffee?

John Stanton
I worked under the current owners of Lava Coffee previously in the Cafe2U franchise system. In the years we spent at Cafe2U we were able to significantly grow the franchise system and, more importantly, we had a fantastic relationship with our franchisees across the country due to the culture that was set by the Board of Directors and management team. When the opportunity came around to join the team again, I jumped at it.

Edenexchange
In simple terms, what does Lava coffee do? Where did the inspiration for Lava Coffee come from and how are you different from other other cafes on the market?

John Stanton
There are many independent cafes and franchise systems all over Australia. At Lava Coffee we want to be the point of difference in the industry. Statistics tell us that across the board success rates are far higher in franchised businesses than independents. Our view is franchise cafes have become unnecessarily expensive in recent years.

We aim to provide potential franchisees the opportunity to enter the industry at a cost that is far more attractive than industry standards. This allows franchisees to not simply get by but to truly succeed. Once operational, the main focus is ensuring every cup of coffee provided to the customer is of the highest standard.

Edenexchange
What’s your advice to potential franchisees who love the dream of a cafe lifestyle but have never run their own business before?

John Stanton
Chase the dream but understand there is more to running a cafe than serving coffees and engaging with the customers. That is the fun part, however there is plenty going on behind the scenes as well. The benefit of being with a strong franchisor is there are systems and processes in place to help with all aspects of running the business.

Also think about the type of business you want to run. At Lava Coffee we have a number of different formats and are always keen to pursue ‘non-traditional’ locations. Some of these opportunities lend themselves to being a five day a week business, allowing a great work / life balance. Other opportunities in retail hubs mean a seven day a week business and the need to manage staff. Work out what you are suited to, and play to your strengths.

Edenexchange
What type of support does Lava Coffee provide once a franchisee’s new cafe open its doors?

John Stanton
Initially support is very intensive as the franchisee has been through training and is at a stage where they need strong mentoring, until their skills are at a level where they’re operationally excellent, and able to work at high speed. Lava Coffee will provide a full-time staff member for the first two weeks of operation. This period can be extended if needs be.

After the initial launch period, franchisees can expect an in-store visit at least every quarter from our operations division, and a further visit from the coffee experts provided by our roasting partners. This combination ensures all aspects are covered – in store marketing, upselling, workflow, cleanliness, food safety, customer service, staff management and the supply of great food and coffee to our customers.

Edenexchange
Where do you see the Australian coffee industry heading into the future? What part will Lava Coffee play as the industry evolves, and what are some major industry trends operators in your sector need to be aware of?

John Stanton
From a retail perspective the coffee industry, and food and beverage in general, are diversifying. Many companies are looking to create new platforms rather than be solely located in food courts and retail precincts.

There is also a desire to be modern and ‘different’. While evolution and being on trend is very important, so too is the need to not stray too far from the fundamentals, where you run the risk of forgetting what the key to the business is – great, consistent coffee, every single time. We feel we are ahead of the curve in looking at non-traditional outlets, and importantly we have a model that works for these sites.

Edenexchange
In your opinion, who would suit running a Lava Coffee business?

John Stanton
Customer service skills are most important as these are things that are personality based. You can learn customer service, however if you are outgoing and enjoy conversing with a range of people you are halfway there. We have a team that can teach you all of the skills required.

While industry experience can be an advantage, if the franchisee can bring a smile and is willing to follow our proven systems then operating a successful business is highly likely, even if they are completely new to the industry.

Edenexchange
What are some of the key achievements you are proud of at Lava Coffee? On the other hand, what challenges have you faced to get the business to where it is today?

John Stanton
We are proud of providing a business model where the franchisees can win. Gone are the high entry prices and high ongoing fee structure that is common in the industry. We have substantially cut start-up costs, and our ongoing fees are set at low, fixed amounts rather than an unfair percentage of turnover.

The challenge we face is standing out in a busy industry. However, as the word spreads about the model we have and the success of our franchisees, we don’t see this being a major issue into the future.

Edenexchange
What are the strategic priorities for Lava Coffee over the next 12 months?

John Stanton
We always want to focus on our existing franchisees and provide support to them in all areas. As a brand we are very keen to grow our footprint across Australia. With our entry level we feel we provide an opportunity for those who are keen to own their own business but have previously been unable to due to financial circumstances.

As we grow in franchisee numbers we can also grow our head office team which provides further benefits to our franchisees.

Edenexchange
What’s the most interesting part of your job? What drives you to do what you do?

John Stanton
Meeting prospective franchisees and hopefully helping them achieve their dreams. I am fortunate to meet a diverse group of people. Most have a burning ambition to run their own business and take control of their lives. Buying a franchise is a long, intensive process. Over the course of this process we get to know each other very well, and we all enjoy the success of our franchisees when they start ticking off goals that are set in the planning stage. That is very rewarding for myself and the entire Lava Coffee team.

Edenexchange
Thanks for your time John

John Stanton
Thank you!

 

About Lava Coffee

Lava Coffee is a vibrant, young Australian owned Specialty Coffee Franchise with a focus on high quality espresso coffee served in non-traditional locations. If you’re interested in learning all about the cafe business and Lava Coffee sounds like the right fit for you, please click here. Lava Coffee offers franchise opportunities based on a tried and tested foundation of proven product, processes and systems for a smooth operation. Just like pouring the perfect crema!